Growing older - where money comes from in later life

We often have the idea in our head that somehow, at about the age of 65, life as we know it stops and we suddenly become a pensioner. But it doesn’t really work like this for a lot of us and, as time goes on, and we’re living longer and healthier lives, later life is likely to look very different.

In terms of where our money is going to come from in later life, there isn’t a simple answer. Just like now, with most of us getting by on a combination of earnings, child benefit, tax credits and so on, our money is likely to continue coming from many different places, although these places may change over time. What we mean by this is that now the bulk of your money could come from a combination of wages and, say, maintenance payments but further down the line you could be living on a pension that you top up with a salary from a part time job.

Why not go back to our budgeter and have a look at the boxes that deal with income? By doing this, you can start to get a feel for which bits of your income may continue throughout your life and which ones will probably stop or change at some point. Your child benefit, for example, will stop once your children grow up and, at some point, you’ll probably want or need to pack in your job. On the other hand, you may start receiving some sort of pension and may be eligible for other benefits.

For a closer look at where your money could come from in later life, follow this link to ‘Where money comes from’.

What you’ll probably start to realise is that the more thought you give to what you want from later life and the more planning you do, the more choices you’ll have when the time arrives.